Bitcoin

What is BTC?

The first ever cryptocurrency invented by Satoshi Nakamoto(a Mysterious figure still unknown), Bitcoin, has risen to be the leading cryptocurrency in the market as of today. With its rising market cap and increasing access at the global level, Bitcoin has managed to become the most preferred and most known cryptocurrency with the highest number of users associated with it. It is the first decentralized crypto currency and its transactions work using the same principle as all other cryptocurrencies and have no involvement with any bank or administrator.

With its tremendously rising market and increased activity by the users, Bitcoin is now the most burning fulcrum of discussion in the global economic arena.

WORKING AND PROPERTIES IN A NUTSHELL

Bitcoin was invented by Satoshi Nakamoto in late 2008, who was trying to make a peer-to-peer file sharing system. With the first release of bitcoin in January 2009, Satoshi announced it to be an electronic cash system that uses a peer-to-peer network to prevent double spending. It has no central authority and is completely decentralized in nature. It is fast, convenient to use and promotes worldwide access.

One of the major advantages of Bitcoins over other cryptocurrencies is that it allows offline storage on the local hardware of the user which is also known as cold storage of Bitcoins. This process prevents unauthorized outside access to the currency, unlike the other currencies where storage is done somewhere on the internet server. But if the hardware or external storage containing Bitcoins is lost or misplaced then there is no way anyone can access or retrieve those lost Bitcoins. Therefore, the efficient handling of cold storage is necessary to prevent loss.

Bitcoin transactions are easiest among all other cryptocurrencies. Anyone can own bitcoins by buying them like physical gold coins. They can be traded from one personal wallet to another. Several digital wallets like Blockchain.info allow the users to buy bitcoins and store them in the personal wallets. People gradually being aware of Bitcoins and after getting to know the associated perks, are now buying a certain amount of Bitcoins and using them for transactions or purchase of goods and services online or just keeping them in their wallets for years like gold so as to retrieve them once their value gets increased.

VALUES, REGULATION AND SECURITY AT A GLANCE

The value of Bitcoins is highly volatile and fluctuates almost daily. But since its release in 2009 to 2017, its value got a tremendous rise which is now nearly 12000 USD per Bitcoin(Fallen from 22000USD). There are almost 21 million Bitcoins in total and that is the total limit for it. As of today’s date, about 80% of the max bitcoins are already in use/mined. It is completely unregulated and self-contained.

Bitcoin miners play a crucial role by engaging their computers to the Bitcoin network. Being associated with cryptography. Bitcoin miners solve the cryptographic puzzle and decrypt the SHA 256 HASH algorithm used by Bitcoin for their traversal and being part of Blockchain. Miners get rewarded with Bitcoins each time they decrypt the cryptographic puzzle in the Bitcoin network and create a block.

Making use of the cold wallet facility, Bitcoins users have managed to maintain their security level and prevent unauthorized access. Considering the current situation of Bitcoins, we can estimate a great future ahead.

A STRONG GROWTH POTENTIAL

Bitcoins are not influenced by banks or any government marketing policies. Transferred through a peer-to-peer medium, it has no involvement of middlemen in its transactions. No laws and no banks can ever seize the Bitcoin possession of any user. Several companies like Lamborghini are also now accepting Bitcoins for their products. Unlike any credit card or debit card transactions, Bitcoin transactions are not controlled by any other medium but rather by the user itself.

CONCLUSION

With increasing usage and access by people, Bitcoins are now making their mark for being a revolution in the world economic system. With respect to the current scenario, we can surely estimate Bitcoins to be a strong foundation stone for cryptocurrencies in the future.